Building Effective Board/ Executive Director Relationships What makes good relationships in nonprofit governance and management Sponsored by:

 Utah Division of Arts & Museums  American Express  Utah Nonprofits Association Outcomes for the Day:

 Defining/recognizing effective relationships;  How to develop effective relationships;  A Call to Action: Starting a Discussion in Your Organization;  References. Character vs. Skills: Emotional Intelligence vs. Leadership Competence

 Clearly define SKILLS of both the Board of Directors and the Executive Director;

 Clearly define the CHARACTER of the Board of Directors and the Executive Director. Governance vs. Management

VERY simply put:

The Board governs;

The Executive Director manages. Role Definitions

1. GOOD by-laws should generally define the roles of the Board members while a GOOD job description generally defines the roles of the Executive Director; 2. Add to this a collaborative Grant of Authority; 3. Define the “why, what, and when” for Board members; 4. Develop a simple 3-year organizational Action Plan which conforms to mission and values. 1. By-laws and Job Description

 All Board members and Executive Director should have a copy of the organization’s by- laws (and have read it with a copy always available at meetings);  All Board members and Executive Director should have a copy of the Executive Director’s job description;  If you don’t have them, get them; if they are inadequate, fix them! 2. Grant of Authority: Board of Directors

 Sets Policies and Procedures for administration of the organization, ensuring fiscal integrity and legality of operations.  Ensures funding of organization with emphasis and responsibility on donations and fundraising.  Signs grants and contracts as the legal body binding the organization.  Approves Annual Budget with periodic reviews to ensure budget is within specified limitations, making changes periodically as determined by funding and activities.  Annual Retreat and Strategic Plan formulation and implementation through committees and Executive Director.  Hire/dismiss, supervise, evaluate, counsel and advise Executive Director, making staff responsible to Executive Director and refraining from administrative details.  Support and hold Executive Director accountable in carrying out duties and Board decisions.  Consult with Executive Director regarding all matters the Board is considering; share all communications with Executive Director.  Review and approve Annual Report.  Enhances the organization’s public standing as representatives in the community. 2. Grant of Authority: Executive Director

 Recommends Policies and Procedures and ensures they are implemented and followed, operating within ethical and legal boundaries.  Responsible for government, foundation, and private grants including writing requests for funding, budget prep, etc.  Grant administration and oversight including program and fiscal accountability to grantors and Board.  Prepares Annual Budget in coordination with Board and ensures expenditures are within the bounds of the budget and in accordance with grants/funding guidelines.  Input to Strategic Plan; implementation of Plan.  Hire/dismiss, supervise, evaluate, counsel, and advise staff; overall responsibility for administrative operations.  Carry out duties and decisions from the Board in a timely manner.  Consult with Board regarding all fiscal and personnel matters the Executive Director is considering; communicate activities in a timely manner.  Prepare Annual Report.  Represent the organization in the community and within government entities in the community. 3. Board Members: WHY, WHAT, and WHEN

 Why are you on the Board?  What would you like to do for the organization?  When and how often would you do this? 4. Action Plan

Develop a simple 3-year organizational Action Plan which conforms to mission and values. This plan will keep you focused, dictate what skills are needed to fulfill the plan, direct Board recruitment, and define committees to accomplish goals. Signs of Mutual Trust, Respect, and Appreciation

 Verbal expression of those feelings (publicly and privately; modeled at Board meetings).  Clear understanding of roles (no second-guessing Board or Executive Director decisions).  Non-confrontational discussions and disagreements (clear parameters of when to agree to disagree).  Body (and facial) language.  Length of Board member and Executive Director term.  Utilization of expertise. Developing Mutual Trust, Respect, and Appreciation

 Personal interactions (social functions, 1-on-1, clear understanding between Executive Director/Board of “why, what, and when”).  Thoughtful gestures; verbal acknowledgement.  Recognizing the humanity in one another (style, passion for the mission, intent).  Clarification and acceptance of roles.  Board feeling well informed; effective communication.  Discussions are non-confrontational and productive.  Competence of both Executive Director and Board of Directors.  Ability of the Board Chair/President to facilitate meetings.  Board recruitment.  Selecting jobs for Board members based on their interest and expertise.  Executive Director and Board dedication.  Being generous with time and resources. Actions that Mold Effective Relationships

 Executive Director Support to the Board;  Board Support to the Executive Director. Executive Director Support to the Board

 Actively participate in Board recruitment.  Actively lead Board orientation and education.  Give information for decision-making.  Organize work processes and structures.  Clarify Board roles and responsibilities.  Provide methods for Board to monitor and evaluate themselves. Board Support to the Executive Director

 ACTIVELY support fundraising.  Offer individuals as sounding boards.  Provide emotional support while monitoring and ensuring the personal well-being of the Executive Director.  Encourage appropriate professional leave.  Give authority.  Provide connections to the community.  Provide infrastructure. Organizational Effectiveness

 Shared Understanding of Mission, Vision, and Goals reflected in a 3-year strategic Action Plan;  Agreed Governance Models and Clear Communications. Agreed Governance Models and Clear Goals

 Activities follow the strategic action plan, and the Board receives regular updates on implementation of the strategic action plan.  Board discussions about current and potential new programs focus on whether a program is relevant to the mission.  Board meetings are time-efficient with few or no last minute additions to the agenda.  Individual Board members give no negative “sidebars”.  No “Board meeting after the Board meeting” occurs. A Call to Action

 Starting a Discussion in Your Organization;  Creating a Format for Action. References

 The board and executive director : developing and nurturing an effective relationship / Kelly Sloan. (The Muttart Foundation).  Board Source www.boardsource.org  www.bridgespan.org  www.bridgestar.org  Centre for Creative Leadership www.ccl.org  www.governancematters.org  Leader to Leader Institute www.pfdf.org  National Council of Nonprofit Associations www.ncna.org  www.nonprofitquarterly.org  www.nonprofitresearch.org  The Society for Nonprofit Organizations www.snpo.org  www.utahnonprofits.org Bair Consulting Patricia A. Bair

P.O. Box 568 Eden, UT 84310 (801) 745-4923

[email protected] www.BairConsulting.com